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Money for college that you
DON'T
need to repay
Several financial aid programs do not require repayment. Money is
often awarded based on merit (having good grades in school), special skill
(e.g., being good at sports), belonging to certain groups (e.g., child of
a union member), financial need or a combination of all. |
Money for college that you
DO
need to repay
College loans must be repaid.
Government loans generally offer better interest rates and terms for
repayment. Learn more about loans, including three quick
tips about student
loans |
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Federal Pell Grant Program - This is a need-based
grant awarded to individuals with low incomes to attend college. To
determine if you're eligible, you must file the FAFSA. To learn
more about eligibility, visit the U.S. Department of Education's Federal Student Aid Web site. |
Perkins Loan - The school you attend is the lender of
a Perkins Loan. You have up to 10 years to repay the loan at a fixed 5%
interest rate (a rate that is generally lower than most private loans).
Your FAFSA determines your eligibility for this loan and students can
borrow up to $4,000 each school year.
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Federal Supplemental Educational Opportunity Grant
(FSEOG) - This is a grant for undergraduate students with
exceptional financial need. Pell Grant recipients with lowest expected
family contributions will be considered first for this grant. To learn
more, visit the U.S. Department of Education's Federal Student Aid Web site. |
Subsidized Stafford Loan - The lender is typically a
bank, credit union or other private lender. The government helps pay the
interest on the loan while you're in school, for the first six months
after you leave school, and if you qualify to have your payments deferred
(postponed). As of July 1, 2006, the interest rate is fixed at 6.8%. To
learn more, click here
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New York's Tuition Assistance Program
(TAP) - This grant helps New York residents with low incomes pay
for education at approved colleges in New York. To learn more about the
program, visit Higher Education Services Corporation's (HESC) Web
site. |
Unsubsidized Stafford Loan - This loan is not
need-based and you are responsible for paying the interest on the loan,
including while you're in school. You can choose to pay the interest while
you're in school or allow it to accumulate for repayment later. If you do
the latter, the amount you have to repay increases. The interest rate is
fixed at 6.8%. To learn more, click here
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School scholarship and assistance programs - Schools
have their own tuition assistance programs that are need-based (determined
by your FAFSA), merit-based (determined by your grades) or a combination
of both. Some schools even offer scholarships based on talent, such as
sports scholarships. Scholarships do not have to be repaid. For more
information about a school's scholarship and assistance programs, contact
the school's financial aid office.
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PLUS Loan - This is a common loan that parents apply
for to pay for their child's college tuition. Parents can apply for the
loan at most financial institutions. It is the parents' responsibility to
repay the loan. |
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Third Party scholarship programs - There are
many scholarships available from private and nonprofit organizations.
Different programs have different requirements that can include writing an
essay, participating in community service work, having athletic talent,
being a member of an underrepresented group, and more. To search a list of
scholarships, visit the U.S. Department of Education's Federal Student Aid Web site.
WARNING: Be careful when submitting scholarship
applications. Get quick tips from the Federal Trade Commission (FTC) on
how to avoid scholarship scams
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